XAUUSD - Potential Breakout/Rejection at Trendline Resistance

XAUUSD is currently consolidating within a potential ascending triangle pattern on the 2-hour chart, supported by an upward sloping trendline (in green). Price is nearing a critical juncture as it approaches a downward-sloping resistance trendline (in red).

Potential Scenarios:

Bullish Breakout: A decisive break above the red resistance trendline could signal a continuation of the upward trend. Look for confirmation with strong bullish candle closes and increased volume. Potential targets could be previous highs.

Bearish Rejection: A rejection at the red resistance trendline, confirmed by bearish candle patterns, could indicate a potential move back down towards the green support trendline.

Risk Management:

Always use proper risk management.
Only risk what you can afford to lose.
Adjust position size according to your account size and risk tolerance.

Disclaimer:

This analysis is for informational purposes only and should not be considered financial advice. Trading involves risk, and you should always do your own research before making any investment decisions.